- ECONOMIC IMPACT -

Latest update: 20 January 

After weeks of gradual decline, GDP estimates for many countries have levelled off.

Polls show that employment prospects have consistently improved since July 2020.

2.3%

The Chinese economy's full year growth was 2.3% in 2020, the slowest rate in more than four decades according to National Bureau of Statistics.

2.9%

Rating Agency S&P forecasts the economic growth rate of Russia at 2.9% in 2021 and 2.7% in 2022, following an estimated contraction of 3.5% in 2020.

Impact of Covid-19 on employment outlook

- SECTOR IMPACT: OIL & GAS -

Latest update: 3 February 

unemployment

15,000

The US oilfield equipment and services sector added around 15,000 jobs from September to December 2020.

33

E&P activity is gradually picking up from the Covid-19-induced downturn – the US alone added 33 rigs in January 2021.

Revenue predictions

Worldwide commencement of mass inoculation against Covid-19 has somewhat improved the prospects for energy demand recovery in 2021.


However, a sustained rise in infections across the US and Europe, as well
as resurgence of new Covid-19 clusters in China, continues to weigh on near-term demand.


Most companies have streamlined their portfolios and may find themselves in somewhat better shape to cope with the varying demand-supply dynamics.

key oil & gas market developments

Frequent adjustments to supply chains could become the new industry norm to account for sudden shortage of workers or delayed shipments.


The OPEC+ group lifted its output by 500,000bpd for January 2021 after Russia, the UAE, and a few others opposed an extension to prevailing output cuts of 7.7 million bpd.


Russia and Kazakhstan would further raise their collective output by 75,000bpd in February and March 2021 as a part of the OPEC+ production policy.


Saudi Arabia plans voluntary crude output cuts of 1 million bpd in February and March 2021.


The US is set to re-join the 2015 Paris Climate Accord under new US President Joe Biden, which could impact new hydrocarbon leases and potentially see more stringent emission regulations.


Oil and gas companies continue to streamline their workforce in line with reduced operations – Shell plans to cut 2% of its staff in Malaysia.

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